Latest news with #DavidRoman
Yahoo
7 days ago
- Business
- Yahoo
Medtech earnings estimates may see 'significant' upward revisions
Tariffs have been weighing on medical device makers' earnings outlook all year. David Roman, Goldman Sachs head of US medtech and healthcare IT research, joins Market Domination to explain why many in the medtech industry are now set up for upward revisions of earnings estimates. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. as you had the chance to talk to folks in the MedTech industry here, it seems like one of the biggest headwinds this year has been concerned over tariffs, right? And the fact that at least some of this stuff gets made in China and other areas abroad and imported here to the US. So I'd love to start there and get your take on what you're hearing from these companies. Excellent. Uh, thank you for having me today. Uh, so you're right. Tariffs has been a major concern for investors. That did drive companies to lower their outlooks for 2025 on most recent earnings calls. If you listen to the first quarter earnings calls, most companies did take take reductions reflecting the then in place tariffs. If you look at MedTech though in context, about 70% of medical devices sold in the US are actually made in the US. This is a significant amount of onshore manufacturing. And unlike some other parts of healthcare where you do see the move of IP around the world for for to to manage effective tax rates, MedTech R&D is very heavily domiciled in the US. So as we as we reflect on kind of where tariff policy sits today, we actually expect fairly significant upward revisions and earnings estimates as we go through second quarter earnings, uh, to take into account what are obviously tariff rates that are moderated, especially on China from what we saw during the April, uh, April earnings season. That's those supply chain stats are interesting, David. How has it always been like that or has there been a shift in the last 5 or 10 years in that industry? So it's actually been a pretty long-standing strategy for MedTech companies to manufacture where they sell. And and and I think it's it's a good point because that trend did accelerate during, uh, the first round, the first Trump administration when tariffs went into place. But remember, the medical device industry is very much a manufacturing industry. So things like freight and logistics costs do go into the calculation when companies think about where to put manufacturing. It also allows them to compete locally. So for example, most take GE Healthcare, who has about 12% of their revenue in China, something like 70 to 80% of what they manu of what they sell in China is manufactured, uh, and sourced locally. And that puts them in a position to be able to compete effectively with companies who are domestically headquartered there. The same is true in the US. Uh, companies try to put manufacturing very close to where they do R&D, and the reason for that is rapid prototyping and, um, trying to accelerate the development of products because this is very much a iterative industry. Putting product development and manufacturing closely aligned to one another has actually been a competitive advantage for several companies.
Business Insider
30-05-2025
- Business
- Business Insider
Beta Bionics initiated with a Neutral at Goldman Sachs
Goldman Sachs analyst David Roman initiated coverage of Beta Bionics (BBNX) with a Neutral rating and $16 price target as part of a broader research note launching coverage on Diabetes Medical Technology. Diabetes technology is poised to sustain double-digit growth, and Beta Bionics technology is well suited for a targeted segment of the Type 1 market, the analyst tells investors in a research note. Goldman Sachs added however that while the company's near-term growth should outpace Diabetes peers and SMID cap MedTech, consensus estimates seem to largely capture the opportunity over the next several years, with valuation reflecting both that level of growth and the need to raise capital down the road to achieve cash flow breakeven. Confident Investing Starts Here:
Business Insider
21-05-2025
- Business
- Business Insider
Doximity price target lowered to $50 from $80 at Goldman Sachs
Goldman Sachs analyst David Roman lowered the firm's price target on Doximity (DOCS) to $50 from $80 and keeps a Neutral rating on the shares after its Q4 results and below-consensus guidance. The company's top-line growth rate is settling into a narrower range of 10%-11% through FY29 vs. FY25, the analyst tells investors in a research note. Goldman adds that it is forecasting relatively flat adjusted EBITDA margins in FY26 on lower y/y gross margins and investments in R&D. Confident Investing Starts Here:
Business Insider
02-05-2025
- Business
- Business Insider
Goldman Sachs Sticks to Its Buy Rating for GE Healthcare Technologies Inc (GEHC)
In a report released yesterday, David Roman from Goldman Sachs maintained a Buy rating on GE Healthcare Technologies Inc (GEHC – Research Report), with a price target of $82.00. The company's shares closed yesterday at $67.67. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Roman covers the Healthcare sector, focusing on stocks such as Teladoc, LivaNova, and GE Healthcare Technologies Inc. According to TipRanks, Roman has an average return of 0.1% and a 54.05% success rate on recommended stocks. Currently, the analyst consensus on GE Healthcare Technologies Inc is a Strong Buy with an average price target of $89.75, implying a 32.63% upside from current levels. In a report released on April 30, BTIG also reiterated a Buy rating on the stock with a $82.00 price target. Based on GE Healthcare Technologies Inc's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $4.78 billion and a net profit of $564 million. In comparison, last year the company earned a revenue of $4.65 billion and had a net profit of $374 million Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GEHC in relation to earlier this year. Most recently, in February 2025, George A. Newcomb, the CAO of GEHC sold 2,000.00 shares for a total of $185,080.00.
